What happened
Markets are moving higher today, but shares of plastic recycling stock PureCycle Technologies (PCT -0.78%) are downright flying higher. In addition to the fourth-quarter 2022 financial results that the company reported yesterday after the market closed, investors are picking up shares of PureCycle today in response to today's news that the company has formed a new partnership.
As of 2:44 p.m. ET, shares of PureCycle Technologies are up 38.6%.
So what
In the pre-revenue phase of its development, there's nothing at the top -- or bottom -- of the income statement that's spurring investors on today. Instead, it's news that PureCycle Technologies is making progress with its flagship facility, Ironton.
The company's first commercial-scale recycling facility, Ironton is in the commissioning phase, and there will, presumably, be greater strides made in the coming weeks. According to Dustin Olson, the company's CEO, Ironton is "is weeks away from the final installation of remaining processes, and we expect to reach mechanical completion by early April."
Adding to the encouraging news that it reported yesterday, PureCycle Technologies announced today that it's partnering with Formerra for North American distribution of its ultrapure recycled polypropylene resin, PureFive, to various industries, including resin distributors, consumer goods manufacturers, food and beverage producers, toy manufacturers, and personal care goods producers.
Now what
For growth companies like PureCycle Technologies, investors want to see that management is making steady progress in bringing the company closer to generating revenue. And that's exactly what the market is surmising is the case with PureCycle Technologies. Despite today's climb, shares are still trading about 40% lower than their 52-week high, so green investors shouldn't be dissuaded from giving PureCycle Technologies a closer look.
